Skip to main content

The proposed acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) has reached a pivotal stage, with senior PTCL officials recently appearing before the Competition Commission of Pakistan (CCP). The regulatory hearing signals an intensifying review of the deal, which includes PTCL’s plan to acquire 100% of Telenor Pakistan and its tower subsidiary, Orion Towers.

PTCL’s Case for the Merger
During the session, PTCL executives presented a comprehensive business strategy, including financial data, operational synergies, and a roadmap to justify the acquisition. The company argued that the merger would enhance network coverage, improve service quality, reduce operational costs, and accelerate investment in next-generation technologies like 5G.

READ MORE:

TI Pakistan Urges Govt to Enforce Generic Medicine Policy for Affordable Healthcare

CCP Raises Competitive Concerns
The CCP, led by Chairman Dr. Kabir Ahmed Sidhu and members Salman Amin and Abdul Rashid Sheikh, challenged PTCL’s claims by raising concerns about potential monopolistic behavior. Key questions centered on the merger’s impact on consumer pricing, service quality, and the viability of smaller telecom players. Of particular concern was the combined entity’s control over telecom towers and spectrum, possibly giving it an unfair competitive edge.

Why This Merger Is Critical
If approved, the merger would consolidate PTCL, Ufone, and Telenor into a single entity—drastically changing Pakistan’s telecom landscape. The number of mobile network operators would shrink from four to three: Jazz, Zong, and the new PTCL–Telenor–Ufone alliance. While this consolidation might streamline operations, critics fear it could stifle competition, limit consumer choice, and slow innovation.

Next Steps in Review
The CCP has not yet granted approval. Further hearings and documentation are expected before a final verdict. Beyond the CCP, the merger must also gain clearance from the Pakistan Telecommunication Authority (PTA) and the State Bank of Pakistan (SBP), both of which will evaluate the deal’s financial and regulatory impact.

Wider Implications
This potential merger is one of Pakistan’s largest telecom deals in recent years. While PTCL seeks to expand its market share and infrastructure, Telenor appears ready to exit the country amid persistent financial and regulatory hurdles. However, the deal’s broader impact on market dynamics remains under close scrutiny.